NYSE:IT

Stock Analysis Report

Executive Summary

Gartner, Inc. operates as a research and advisory company.


Snowflake Analysis

Proven track record with reasonable growth potential.


Similar Companies

Share Price & News

How has Gartner's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: IT's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

17.6%

IT

8.3%

US IT

7.2%

US Market


1 Year Return

-29.6%

IT

-2.8%

US IT

-10.4%

US Market

Return vs Industry: IT underperformed the US IT industry which returned -2.8% over the past year.

Return vs Market: IT underperformed the US Market which returned -10.4% over the past year.


Shareholder returns

ITIndustryMarket
7 Day17.6%8.3%7.2%
30 Day-16.7%-12.6%-12.6%
90 Day-30.0%-15.2%-19.4%
1 Year-29.6%-29.6%-1.8%-2.8%-8.5%-10.4%
3 Year-0.8%-0.8%63.1%56.0%15.8%8.3%
5 Year28.8%28.8%92.0%75.1%35.8%21.0%

Price Volatility Vs. Market

How volatile is Gartner's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Gartner undervalued compared to its fair value and its price relative to the market?

19.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IT ($107.81) is trading below our estimate of fair value ($134.63)

Significantly Below Fair Value: IT is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: IT is poor value based on its PE Ratio (41.5x) compared to the IT industry average (24.2x).

PE vs Market: IT is poor value based on its PE Ratio (41.5x) compared to the US market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: IT is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: IT is overvalued based on its PB Ratio (10.2x) compared to the US IT industry average (2.8x).


Next Steps

Future Growth

How is Gartner forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

14.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IT's forecast earnings growth (14% per year) is above the savings rate (1.7%).

Earnings vs Market: IT's earnings (14% per year) are forecast to grow faster than the US market (12.2% per year).

High Growth Earnings: IT's earnings are forecast to grow, but not significantly.

Revenue vs Market: IT's revenue (8.3% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: IT's revenue (8.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IT's Return on Equity is forecast to be very high in 3 years time (57%).


Next Steps

Past Performance

How has Gartner performed over the past 5 years?

-2.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IT has high quality earnings.

Growing Profit Margin: IT's current net profit margins (5.5%) are higher than last year (3.1%).


Past Earnings Growth Analysis

Earnings Trend: IT's earnings have declined by -2.8% per year over the past 5 years.

Accelerating Growth: IT's earnings growth over the past year (90.5%) exceeds its 5-year average (-2.8% per year).

Earnings vs Industry: IT earnings growth over the past year (90.5%) exceeded the IT industry 13.4%.


Return on Equity

High ROE: Whilst IT's Return on Equity (24.86%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Gartner's financial position?


Financial Position Analysis

Short Term Liabilities: IT's short term assets ($2.0B) do not cover its short term liabilities ($2.9B).

Long Term Liabilities: IT's short term assets ($2.0B) do not cover its long term liabilities ($3.4B).


Debt to Equity History and Analysis

Debt Level: IT's debt to equity ratio (239.6%) is considered high.

Reducing Debt: IT's debt to equity ratio has reduced from 260.3% to 239.6% over the past 5 years.

Debt Coverage: IT's debt is well covered by operating cash flow (25.1%).

Interest Coverage: IT's interest payments on its debt are well covered by EBIT (3.8x coverage).


Balance Sheet

Inventory Level: IT has a low level of unsold assets or inventory.

Debt Coverage by Assets: IT's debt is not covered by short term assets (assets are 0.9x debt).


Next Steps

Dividend

What is Gartner's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate IT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate IT's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if IT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if IT's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of IT's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.8yrs

Average management tenure


CEO

Gene Hall (62yo)

15.58s

Tenure

US$11,502,517

Compensation

Mr. Eugene A. Hall, also known as, Gene serves as Chief Executive Officer of Gartner Inc. since 2004. He is Chief Executive Officer of Gartner Consulting, Inc., a subsidiary of Gartner, Inc. Mr. Hall has b ...


CEO Compensation Analysis

Compensation vs Market: Gene's total compensation ($USD11.50M) is about average for companies of similar size in the US market ($USD11.74M).

Compensation vs Earnings: Gene's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Eugene Hall
CEO & Director15.58yrsUS$11.50m1.34% $129.1m
Craig Safian
Executive VP & CFO5.67yrsUS$3.51m0.048% $4.6m
David McVeigh
Executive Vice President of Global Business Sales0.83yrUS$2.59m0.020% $1.9m
Robin Kranich
Executive Vice President of Human Resources11.83yrsUS$2.58m0.015% $1.4m
Alwyn Dawkins
Executive Vice President of Conferences11.83yrsUS$2.60m0.046% $4.4m
Peter Genovese
Senior Director of Sales Strategy & Operationsno datano datano data
Michael P. Diliberto
Executive VP & Chief Information Officer3.67yrsno data0.017% $1.6m
David Cohen
Group Vice President of Investor Relationsno datano datano data
Jules Kaufman
Executive VP2.58yrsno data0.0085% $817.5k
Kendall Davis
Executive Vice President of Products & Services13.58yrsno data0.16% $15.3m

8.8yrs

Average Tenure

52.5yo

Average Age

Experienced Management: IT's management team is seasoned and experienced (8.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Eugene Hall
CEO & Director15.58yrsUS$11.50m1.34% $129.1m
Stephen Pagliuca
Independent Director10yrsUS$300.07k0.068% $6.5m
William Grabe
Independent Director26.83yrsUS$317.42k0.15% $14.6m
Raul Cesan
Independent Director8yrsUS$310.03k0.078% $7.5m
Richard Bressler
Independent Director14yrsUS$330.07k0.027% $2.6m
Karen Dykstra
Independent Director12.67yrsUS$314.90k0.022% $2.1m
Anne Fuchs
Independent Director20.67yrsUS$332.61k0.024% $2.3m
James Smith
Independent Chairman of the Board15.58yrsUS$414.88k1.19% $114.7m
Eileen Serra
Independent Director2.42yrsUS$306.05k0.0011% $107.6k
Peter Bisson
Independent Director3.58yrsUS$307.58k0.0020% $188.3k

13.3yrs

Average Tenure

64yo

Average Age

Experienced Board: IT's board of directors are seasoned and experienced ( 13.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: IT insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Gartner, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Gartner, Inc.
  • Ticker: IT
  • Exchange: NYSE
  • Founded: 1979
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: US$9.606b
  • Shares outstanding: 89.10m
  • Website: https://www.gartner.com

Number of Employees


Location

  • Gartner, Inc.
  • 56 Top Gallant Road
  • PO Box 10212
  • Stamford
  • Connecticut
  • 6902
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ITNYSE (New York Stock Exchange)YesCommon StockUSUSDOct 1993
GGRADB (Deutsche Boerse AG)YesCommon StockDEEUROct 1993
0ITVLSE (London Stock Exchange)YesCommon StockGBUSDOct 1993
G1AR34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 4 REPR 1 COMBRBRLJan 2020

Biography

Gartner, Inc. operates as a research and advisory company. It operates through three segments: Research, Conferences, and Consulting. The Research segment offers objective insights and advice on the priorities of various leaders in a range of functional areas of the enterprise through reports, briefings, proprietary tools, access to research expert, peer networking services, and membership programs that enable clients to drive organizational performance; and research and analysis in various business functions, such as human resources, sales, legal, and finance. This segment delivers its research, primarily through a subscription service. The Conferences segment offers business professionals in an organization the opportunity to learn, share, and network various events. The Consulting segment offers market research, custom analysis, and on-the-ground support services. This segment also offers actionable solutions for IT-related priorities, including IT cost optimization, technology modernization, and IT sourcing optimization. The company has operations in the United States, Canada, Europe, the Middle East, Africa, and internationally. Gartner, Inc. was founded in 1979 and is headquartered in Stamford, Connecticut. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 00:18
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.